BU398 Chapter Notes - Chapter 6: Decision-Making, Egalitarianism, Geert Hofstede
Document Summary
Economic, technological and competitive forces have combined to push many companies from a domestic to a global focus. Economies of scale: building a global presence expands an organization"s scale of operations, enabling it to realize economies of scale, economies of scale also enables companies to obtain volume discounts from suppliers, lowering the organization"s cost of production. The protesters were a varied group such as unions worried about job losses, environmentalists worried about pollution and labour groups worried about working conditions. Stages of international development: domestic stage, the company is domestically oriented but managers are aware of the global environment and may want to consider initial foreign involvement to expand production volume and realize economies of scale. International stage: the company takes exports seriously and begins to think multi-domestically, multi-domestic: a. Typical alliances include licensing, joint ventures and consortia: joint venture: a separate entity created with 2 or more active firms as sponsors.
